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Reddit will join the benchmark index on Aug. 18, replacing AvalonBay Communities, becoming only the second pureplay social media company in the S&P 500
Reddit $RDDT will join the S&P 500 on Aug. 18, replacing AvalonBay Communities, S&P Dow Jones Indices announced Thursday. Reddit stock climbed 12.6% in after-hours trading following the announcement.
Reddit will take AvalonBay's slot in the Communication Services sector. AvalonBay is being acquired by fellow S&P 500 member Equity Residential in a deal expected to close soon, pending final conditions. The combined company will be renamed Vivmark Residential and will remain in the S&P 500, according to S&P Dow Jones Indices.
Reddit becomes only the second pureplay social media company in the S&P 500, according to CNBC. Meta $META is the other. Pinterest $PINS and Snap $SNAP, though earlier to go public, have not grown to Reddit's scale by market capitalization. Twitter $TWTR had been an S&P 500 constituent before Elon Musk's 2022 takeover; the platform was subsequently rebranded as X and operates under SpaceX ownership.
